- April 2, 2020
- Posted by: amitmadrid
- Category: Data Analytics
Zara, the name everyone loves and competitors’ envy. The company invests practically nothing on advertising. Hardly do we see a Zara ad popping up on TV screens. Furthermore, their products seldom are on sale. Most noteworthy, a typical ZARA customer visits the store 17 times a year. Isn’t that a wow?
How does a fashion company achieve such unparallel success? Well, Zara uses in depth data analytics to manage supply chain and deliver customers what they want. Zara has disrupted the fashion market with the use of data analytics to keep up with the customer’s demand on a real-time, confined basis and push new catalogue in retort to customers pull. This as a result, helps them to stand out from the rest as a market leader.
Zara’s smart big data tactics
- ZARA captures data from e-commerce sales, PDA devices and RFID tags on the clothing, POS terminals, and customer surveys. Customer preferences are captured by store employees in their PDAs in details: cut, colour, buttons, zippers, and more.
- Zara has constructed its business on RFID tags as per the Wall Street Journal. This helps Zara to manage inventory economically and allows the company to make a note of the regularity of the outfits that are moving in and out.
- Zara also collects data from its social media platforms and surveys. They are active all the time that helps them understand their customers’ fashion sense and needs.
- After collecting all the data from the above-mentioned sources, it is then collated in their data centre in Arteixo, Spain. The analysts work 24 hours a day to process the data to initiate new design releases, ship to stores and much more. Zara generates data driven predictions weekly based on every single SKU they sell. With the help of Data Analytics Zara understand customers in and out. Hence, the popularity.
Zara’s Data Driven vs. Competitors
- Zara retails over 11,000 diverse items every year versus 2,000 to 4,000 sales carried by its competitors.
- Zara also prides in having the lowest level of year-end inventory among all. This lean working capital management counterbalances their high production costs that further enables them to boast rapid sales turnover rates.
- Only 15% to 25% of a line is designed before the advent of the season compared to 80% designs being made by the competitors.
- Over 50% units are manufactured after designing in the mid-season based on data driven results of previous sales popular products whereas competitors manufacture only 20% items on a real-time at the peak of the season
- While other retailers commit are left with excess inventory due to advanced manufacturing ahead of the season, they have end up selling stocks at a heavily discounted end-of-season sale.
- In contrast, Zara’s quick refill cycles create a sense of shortage which in turn generates more demand and hence ZARA always ends in profit.
Of late, fashion industry is growing its dependency on data analytics to keep up with customers growing demands and latest trends. The fashion industry is at the early stage of applying data analytics to increase sales, meet demands and solve problems. With time, it will more interesting to see how fast fashion utilizes data analytics potential to the fullest.
The world of fashion has changed tremendously in the last decade, paving the way for new jobs in fashion. For people, who love to dive into the ocean of data and computer science and has a distinct love for fashion, a fashion data analyst is just the right career choice for you.
So, if you Love ZARA or any other market leaders in the fashion industry. You can start off by being a data analyst. There are many big players like Nike, H&M and many more who are on the lookout for talented fashion data analysts to join gang.
A degree in data analytics will help you with the needed skills like critical-thinking and problem-solving, project management, and also open doors of opportunities across all industries apart from fashion in various roles such as data consultants, data managers, chief data officers, business analysts, big data architects, and much more.
What to study to become a Fashion Data Analyst?
Data analysts are usually study from the data analyst courses available and some also pursue a more advanced degree in either engineering, programming, math, or predictive analytics. Moreover, data analytics certification courses in many institutes like Madrid Software Trainings which is one of the best Data Analytics Institute in Delhi.
Madrid Software Trainings is renowned for offering Data Analyst courses in Delhi with an in-depth theoretical and practical knowledge of all the latest data science tools and techniques. Moreover, the course also teaches you to gain the maximum benefits of big data along with a global understanding of the opportunities it holds. You will also learn how to accomplish big data projects and analyse consumer and economic trends through collection of data and its analysis.
Madrid Software Trainings offer you industry-based specialized curriculum to gain the right skillset considering the best practices of current industry and the future trends to keep you a step ahead of others in your career in this field.
You have the passion and love for fashion, we have the resources to turn your dream into a reality.
Take off your career by enrolling a Data Analytics Certification Courses with Madrid Software Training one of the leading Data Analytics institute in Delhi